Minister of Economic Affairs Ho Mei-Yueh meets with members of European Chamber of Commerce

December 6, 2004

On Dec. 3, 2004, Minister of Economic Affairs Ho Mei-Yueh invited representatives from the European Chamber of Commerce in Taipei to discuss widespread concerns among Chamber members and manufacturers over limits on government purchasing, limits on imports from mainland China, the adoption of international standards on product inspections, vehicle fuel consumption standards, and the long and short term response measures adopted by Taiwan government agencies. Delegations from both Taiwan government agencies and the ECCT attended the luncheon meeting.

Major concerns and topics discussed at the luncheon included speeding up the process for reducing restrictions on imports from mainland China – the ECCT expressed hope that government purchasing restrictions would be lifted for European businesses; the use of international standards in Taiwan while reducing the use of Taiwan products standards for imports; and automobile testing.

On the subject of mainland Chinese imports, Minister Ho commented that Taiwan is currently employing "transition measures" to avoid an overflow of Chinese imports into the Taiwan market, which would adversely affect domestic industries. Ho said that Taiwan is taking a gradual approach to opening its market to mainland Chinese imports and that the Ministry would announce a relaxation on import restrictions under conditions which "do not endanger national security, and avoid negative effects on domestic industries." The MOEA's Board of Foreign Trade continues to convene review committee meetings every two months to hear manufacturers' recommendations. In addition, the Board reviews and discusses undeveloped cases every six months, in order to promote the expansion of mainland Chinese imports.

Regarding European business' concerns about government purchasing, the ECCT conveyed that the European Union supports Taiwan entering the Agreement on Government Procurement (GPA). While Taiwan has not yet joined the GPA, the ECCT still hopes that Taiwan will relax restrictions on government purchasing for foreign businesses. Taiwan once again stressed that it would abide by its commitment as part of the WTO, and has complied with WTO regulations to complete its entrance into the GPA. However, the Taiwan delegation noted that due to "non-economic or trade issue related" interference, the hard work of GPA has been ignored and GPA operations have been hindered, creating a regrettable situation for both Taiwan and foreign businesses. The Taiwan delegation also urged GPA countries to adhere to the spirit of the preface of the GPA, which calls for "encouraging non-member governments to accept and enter the agreement," so that Taiwan could complete the procedures for entering the GPA as soon as possible. Once Taiwan becomes a GPA member country, it will be ready to open up its government procurement markets to member countries under GPA standards, said the Taiwan delegation.

With regards to product standards and testing, the ECCT expressed its hope that Taiwan would adopt international standards, as European importers face the difficulty of having to obtain multiple certifications. One particular problem the ECCT noted was the need to obtain multiple testing certifications for vehicle components from different ministries. The Taiwan delegation responded by saying that the MOEA accepts reports from the Ministry of Transportation and Communications' (MOTC) Vehicle Testing Center for listed automotive components, and that the MOTC also accepts certification documents from the MOEA Bureau of Standards, Metrology and Inspection (BSMI), as the bureau participates in the MOTC's "Vehicle Model Safety and Quality Consistency Review and Testing Operations." The streamlined procedures of these agencies should address the problems of the ECCT's difficulties with the testing reports. In addition, with regards to the Chamber's concerns of automotive testing standards and methods, the MOEA will also coordinate with the MOTC to address the many problems surrounding automotive manufacturer testing procedures, as well as unreasonably high fees.

The delegations discussed the above issues in detail, and both sides also exchanged opinions on other issues such as Taiwan's entrance into the WHO, restrictions on mainland Chinese personnel in Taiwan for training, the development of Taiwan service industry, Taiwan's participation in GATS negotiations, importing of European cosmetic products, the highly time-consuming testing requirements for fresh foods, vehicle fuel consumption standards, and data exclusivity for drugs.

At the luncheon Minister Ho also responded to news that Standard and Poor (S&P)downgraded Taiwan's credit rating from 'stable' to 'negative', with a rating of AA-/A-1 plus. Minister Ho pointed out that Taiwan's 2004 domestic investment as part of GDP is estimated to be 20.27%, rather than 17.4% as listed by S&P. With major domestic investment in the optoelectronics and semiconductors industries, the high speed rail, and the Sixth Naptha Cracker, Taiwan predicts that its whole year investment growth rate in 2004 will reach 24.9% -- the highest since 1993.

Attending the luncheon from the Taiwan side were: Vice-Minister of Economics Shih Yen-shiang; Huang Chih-peng, Director-general of the Board of Foreign Trade; Lin Neng-jong, Director General of BSMI; Yeh Huey-ching, Director-general of the Bureau of Energy; Kuo Nein-hsiung, Deputy Director General, the Industrial Development Bureau; Su Ming-tong, Deputy Director, Department of Planning Public Construction Commission; Angela T. Chu, Director General, IDIC and Robert Y.G. Ho, Commercial Attache, IDIC.

ECCT members in attendance included: Dirk Sanger, Chairman, ECCT & Managing Director, Melchers Taiwan; Guy Wittich, CEO, ECCT; Jerry Chiu, Co-Chairman, ECCT Logistics Committee & Managing Director, Exel Taiwan; Geoffrey Spencer, Co-chairman ECCT Procurement & Project Committee & Vice President, Siemens Taiwan; Wolfram Geisler, Chairman, ECCT Automotive Committee & President, DaimlerChrysler Taiwan; Shane Neal, Managing Director, Wellcome Taiwan; John Pickles, Chairman, ECCT WTO Committee & President, Asian Pacific Research; Pascal Kerneis, Managing Director, European Service Forum; amd Wolfram Wagner, ECCT Product Certification Committee & TUV Rheinland.

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